PLDT, Inc. · PSE:TEL
PLDT — Q1 2023 Earnings Presentation
54 slides from PLDT's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Financial and Operating Results
First Quarter 2023 Financial and Operating Results 1Q2023 Podcast 4th May 2023
Slide 2: Our Purpose, Vision and Mission
OUR PURPOSE We are a Filipino company inspiring innovation and meaningful connections through generations VISION MISSION We aspire to be a happy space, using Our people deliver meaningful connections technology to empower and build bridges of and experiences for our customers collaboration, across s
Slide 3: Our Key Business Priorities
Our Key Business Priorities Sustainably Shaping Continued Growth Streamlining Our the Market in Our Core Operations 3
Slide 4: PLDT Smart further reinforced its core infrastructure
PLDT Smart further reinforced its core infrastructure Homes Passed Domestic and International Fiber Footprint +11% 17.2 M VS. SPLY 15.5M; +1.7M +9% 1.1M VS. SPLY 1.0M; +93K The fastest and most extensive network in the country 4
Slide 5: The undisputed fastest integrated network
The undisputed fastest integrated network PLDT is the Philippines’ Smart is the Philippines’ Fastest Fixed Network* Fastest* and Best Mobile Network * FIVE years in a row 5
Slide 6: 2023 Q1 Performance
2023 Q1 Performance Holding the fort amidst challenges Reliability at Home Live More Today Trusted Partner for Growth • Increasing fixed line • Stable revenues • Core business growth driven subscriber based despite • Stronger Smart brand and by higher digital adoption installation challenges mobile
Slide 7: Enterprise
Enterprise Most trusted transformation partner PLDT Enterprise fuels 'myTOYOTA Connect' with Smart IoT eSIM solutions Smart's platform will enable Toyota to maximize the benefits of an integrated connectivity management platform. This is just a glimpse of how PLDT Smart is revolutionizing industries
Slide 8: Sustainability
Sustainability Focus on business continuity, energy efficiency and embedding ESG in the company’s DNA ISO 22301: 2019 Certified ISO 50001:2019 Certified Partnership with FirstGen, (Security and Resilience) (Energy Management System) Energy Development Corp. Focus on business continuity ePLDT’s VITRO
Slide 9: Growth behind resilience
Growth behind resilience Telco Core Net Service Revenues EBITDA* 8.6B 47.1B 26.0B +5% vs. YAGO’s 8.2B +2% vs. YAGO’s 46.1B +2% vs. YAGO’s 25.5B *EBITDA is ex-MRP, ex-Strato 9
Slide 10: Financials
@PLDT /Zinanctals /
Slide 11: PLDT Group: Financial Highlights
PLDT Group: Financial Highlights (Php in bn) 1Q2023 1Q2022 (1) 1Q2023 vs 1Q2022 Service Revenues 47.1bn 2% (net of interconnection costs) 46.1bn +1.1bn Cash Opex, Subsidies, Provisions 21.1bn 20.6bn 2% (ex-MRP) +0.5bn * excl Provisions: ₱20.0bn, +₱0.3bn or +1% Provisions 1.1bn 0.9bn EBITDA 26.0bn 25
Slide 12: PLDT Group: Consolidated Service Revenues
PLDT Group: Consolidated Service Revenues (Php in bn) 1Q2023 1Q2022 (1) 1Q 2023 vs 1Q 2022 Individual 19.8bn 19.9bn -0.1bn Fiber only 12.8bn 15.0bn 14.2bn 6% Home 14% +0.8bn +1.6bn Enterprise 11.8bn 11.2bn 5% +0.5bn Consumer and Enterprise 46.6bn 45.3bn 3% +1.3bn International and Carrier 0.7bn 26%
Slide 13: Home: Growth continues albeit at slower pace post-pandemic
Home(1): Growth continues albeit at slower pace post-pandemic (Php in bn) 1Q23 vs 1Q22 1Q 2023 6% ₱15.0bn ➢ HOME net adds in 1Q23 more than 3x +0.8bn 4Q22 due to lower churn and higher migrations ➢ Market remains underpenetrated Fixed Wireless Voice ▪ Unserved demand more at lower Non-Fiber 14.2 15.
Slide 14: Enterprise: Data and ICT strong drivers of emerging revenue growth
Enterprise(1): Data and ICT strong drivers of emerging revenue growth (Php in bn) 1Q23 vs 1Q22 1Q 2023 ₱11.8bn 5% +0.5bn ➢ Corporate data grew 7% due to higher fiber, managed IT and i-Gate revenues 11.2 11.4 11.8 12.2 11.8 ➢ ePLDT/ICT rose 14% mainly from data center and cloud services ➢ PLDT Global
Slide 15: Individual: Positive trends for mobile data business
Individual(1): Positive trends for mobile data business amidst industry pressures (Php in bn) 1Q23 vs 1Q22 1Q 2023 ₱19.8bn -0.1bn ➢ Data usage per sub and data traffic continue to register year-on-year increases ➢ Except for impact of inflation on TNT (lower end brand), Smart prepaid and 19.9 20.4 2
Slide 16: Data/broadband: 82% of consolidated service revenues
Data/broadband: 82% of consolidated service revenues (Php in bn) ILD (2023 vs 2022) (1%) 1.2 4% 0.4 Mobile Data ₱18.1bn +0.7bn 7.0 8% Home Broadband ₱13.0bn 1Q2023 +1.0bn ₱47.1bn 7% Data/Broadband 6% Corporate Data ₱ 6.2bn (82%*) +0.4bn 38.5 +2.2bn 20% * 1Q22: 79% ICT ₱ 1.2bn % of data/broadband per
Slide 17: Consolidated EBITDA (ex-MRP): Trending to exceed the ₱100bn mark
Consolidated EBITDA (ex-MRP)(1): Trending to exceed the ₱100bn mark for 2023 (Php in bn) 1Q23 vs 1Q22 1Q 2023 2% ₱26.0bn ➢ ₱1.1bn rise in revenues fully absorbed ₱0.5bn rise in costs +0.6bn Margin: 52% +4% +1.0bn 26.0 25.5 25.0 25.0 25.1 1Q22 2Q22 3Q22 4Q22 1Q23 1Q23 vs 2022 quarter ave. 2022: ₱100.
Slide 18: Telco Core Income: Strong start for 2023
Telco Core Income(1): Strong start for 2023 (Php in bn) 1Q23 vs 1Q22 FY 2022 ➢ Higher EBITDA (₱0.6bn) and lower depreciation (₱0.6bn) fully offset ₱8.6bn 5% increases in financing costs (₱0.2bn) and provision for income taxes +0.4bn (₱0.5bn) +12% +0.9bn 8.8 8.4 8.6 8.2 7.8 1Q22 2Q22 3Q22 4Q22 1Q23 1
Slide 19: PLDT Group: Telco Core and Reported Income
PLDT Group: Telco Core and Reported Income (Php in bn) 1Q 2023 1Q 2022 2023 vs 2022 5% Telco Core Income 8.6bn 8.2bn +0.4bn Share in Voyager/Bank Hold Co Loss (0.6bn) (0.7bn) -- Telco Core Income + Voyager 8.0bn 7.6bn 6% +0.5bn 382 sites In 2023, US$/PHP appreciated by ₱1.497 1Q2023 54.318 YE2022 55
Slide 20: PLDT Group: Debt Profile
PLDT Group: Debt Profile Debt Balance Debt Maturities (gross) (PHP in billions) (PHP in billions, 31 March 2023) Net Debt Net Debt-to-EBITDA* Gross Debt ₱ 220.7bn 2.18x ₱ 247.7bn (YE22: 2.25x) 124.9 255.4 228.7 251.9 225.7 247.7 220.7 26.8 26.2 26.9 26.5 11.6 22.8 15.0 26.6 20.3 2021 2022 Mar-23 202
Slide 21: PLDT Group: Consolidated Capex
PLDT Group: Consolidated Capex (Php in bn) ➢ Capex guidance for 2023: ₱80-85bn Business Capex 9% ▪ Includes fresh capex and impact of prior year’s Network/IT 24% commitments +7.8bn 96.8 Data Center and 89.0 Subsidiaries ▪ Investment in capacity to drive revenue growth and 12.2 -5.3 support continuin
Slide 22: Fixed Fiber and Wireless Network: Selected Highlights
Fixed Fiber and Wireless Network: Selected Highlights Extensive Fixed Network Reach Presence TOTAL HOMES PASSED 69% FTTH COVERAGE TOTAL FTTH CAPACITY* TOTAL FIBER FOOTPRINT (Million Homes) (Barangays ‘000) (Million Ports) (Thousand Cable Kilometers Laid) *excluding VVDSL of 0.96mn (1Q2023) Internati
Slide 23: Smart: 5G Highlights
Smart: 5G Highlights Connected Unique Devices Data Traffic In ‘000 In TB (Total for the Quarter) +1,288% +15,733% +14% +17% 3,492 46,532 3,072 39,781 2,511 31,166 2,114 22,735 1,583 16,098 1,176 759 9,752 252 376 520 2,627 5,686 294 944 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Slide 24: Maya: Fintech Game Changer with the Most Advanced Digital Bank
Maya: Fintech Game Changer with the Most Advanced Digital Bank #1 Digital bank Fastest-growing digital bank #1 Merchant acquirer Largest merchant acquirer, QR PH leader #1 Rated finance app Among local finance apps in PH 24
Slide 25: Maya: Cutting-edge digital banking embedded into payment ecosystem
Maya: Cutting-edge digital banking embedded into the #1 payment ecosystem Merchant Acquiring MSME Banking Terminals Working capital loans Payment gateway Deposit/ Settlement accounts QR payments Disbursements Maya Business App for Micro merchants Consumer Wallet Consumer Banking Online and Offline p
Slide 26: Maya: Fastest-growing digital bank in the Philippines
Maya: Fastest-growing digital bank in the Philippines Bank Customers Deposit Balance Loans Disbursed ~1.8m ~Php21b >Php6b Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Bank customers are 2-3
Slide 27: Other Matters: Updates
Other Matters: Updates ➢ SIM Registration ▪ As of 03 May 2023, SMART leads in number of SIMs registered: 44.7mn (Prepaid: 42.5mn; Postpaid: 2.2mn) ➢ Class Action Suit Developments ▪ Two individuals, each represented by different law firms, submitted separate motions to serve as lead plaintiffs ✓ Tot
Slide 28: Ee Qa ol a a
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Slide 29: Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income
Consolidated EBITDA (ex-MRP), EBIT and Telco Core Income (Php in bn) Higher Higher Higher Svc Rev C0S, net Depn EBIT (net of IC) Provisions 25.5 +1.1 -0.2 -0.2 26.0 11.7 9% 14.3 EBITDA 2% +1.1bn (ex-MRP) +0.6bn 1Q 2022 1Q 2023 1Q 2023 EBITDA margin EBIT margin 53% 52% 29% (vs 2022: 28%) Higher Highe
Slide 30: ePLDT Data Center Business: Well positioned to attract hyperscalers
ePLDT Data Center Business: Well positioned to attract hyperscalers 10 4 600+ Gbps sites TIA-942* rated 3 certified facilities Premium access to Smart and PLDT strategically spread across PH eyeballs 8,930 500GB Full capacity racks 27.9MW Peak local peering traffic 7,477 ready capacity; 67% utilizat
Slide 31: PLDT Group: Subscriber Base
PLDT Group: Subscriber Base (in ‘000) Broadband Fixed Line Mobile 2% 3,976 3,992 3,828 +3K 3,825 65,034* 66,305 -16K -1,270K Cellular 63,940 65,215 -2% 3,281 +33K 3,248 +1% Fixed Prepaid 61,963 63,263 -2% Postpaid 1,977 +24K 1,952 +1% Fiber 3,014 +81K 2,934 +3% Mobile Broadband 1,095 +5K 1,090 -- (d
Slide 32: PLDT Group: Broadband Subscriber Base
PLDT Group: Broadband Subscriber Base (in ‘000) Fiber Only: Gross Connects and Migrations 2022 2023 (Monthly ave. per qtr) Subscribers (in '000) 1Q 2Q 3Q 4Q FY2022 1Q Fixed Broadband Gross 281 272 287 278 1,118 225 20 35 Churn (114) (205) (245) (272) (836) (192) 31 Net Adds 167 67 41 6 282 33 3,281
Slide 33: Sustainability Valentine and Earth Day Campaigns
PLDT and Smart Sustainability Valentine Campaign PLDT and Smart Sustainability Earth Day Campaign
Slide 34: Focus: Energy Efficiency and Business Continuity
Focus: Energy Efficiency and Business Continuity ISO 50001:2019 (Energy Management System) Certified ISO 22301: 2019* (Security and Resilience) Certified Clark PLDT Makati Pasig Cebu Smart 22 certified sites in 2022 SDG: 7 PLDT: 14 sites Smart: 8 sites ePLDT’s VITRO Data Centers in Clark, Makati, Pa
Slide 35: Focus: Online Safety
Focus: Online Safety (Cyber Security, Data Privacy, Online Child Abuse, Online Piracy) Collaboration with government to capacity build NPC Compliance Check SDG: 16, 17 SDG: 16 National Privacy Commission Shared best practices on cybersecurity with conducted on-site visit of PLDT and several governme
Slide 36: Focus: Diversity and Inclusion
Focus: Diversity and Inclusion (Empowering and Protecting Women, Youth and Communities) Financial Inclusion with Maya Supporting Women Farmers Empowering Youth SDG: 2 SDG: 16 SDG: 17 #BuyLocal PLDT and Maya pushing for financial As of April 2023, PLDT and Smart have inclusion, financial security and
Slide 37: Focus: Harnessing and Protecting Natural Capital
Focus: Harnessing and Protecting Natural Capital (#Connected with Nature) Contract Signing for Renewable Energy Supply Estimating carbon capture in the Agusan Marsh (Geothermal Energy) Wildlife Sanctuary ujsing technology solutions SDG: 7, 13 SDG: 15. 17 Photo: Francis Giles Puno, President and COO
Slide 38: Focus: Protecting Natural Capital
Focus: Protecting Natural Capital (#Connected with Nature) Use of IoT and AI to preserve biodiversity Smart network roll-outs support Helping map out and measure and carbon sequestration in the mangrove Reforestation and Forest Protection Philippine blue carbon footprint forest of Sasmuan SDG: 14 SD
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Slide 40: Subscriber Base: Mobile
Subscriber Base: Mobile Mobile Subscribers by Category: (1) Net Adds (Reductions) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 1Q2023 vs YE2022 (2) Mobile Subscriber Base Prepaid 62,999,637 64,287,019 65,972,119 67,365,162 68,224,018 (1,287,382) (2%) Smart Prepaid 24,044,239 24,394,379 25,103,659 25,679,480 2
Slide 41: Subscriber Base: Fixed Line and Broadband
Subscriber Base: Fixed Line and Broadband Fixed Line Subscribers Net Adds Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 1Q2023 vs YE2022 Fixed Line Subscribers 3,828,445 3,825,424 3,835,305 3,821,296 3,766,956 3,021 - Broadband Subscribers Net Adds Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 1Q2023 vs YE2022 BROADBAND
Slide 42: ARPU
ARPU Mobile ARPU, Net(1) : 2023 2022 1Q 1Q 2Q 3Q 4Q Smart Postpaid 678 786 723 699 705 Smart Prepaid 107 99 104 106 109 TNT 86 82 86 85 86 Sun Postpaid 547 440 580 458 581 (1) Includes Mobile Broadband subscribers Broadband ARPU, Net : 2023 2022 1Q 1Q 2Q 3Q 4Q (2) Fixed Line Broadband 1,441 1,403 1,
Slide 43: Consolidated Financial Highlights
Consolidated Financial Highlights 1Q2023 (1) Y-o-Y 1Q2022 Wireless Fixed Line Others Consolidated % Change (Php in millions) (2) Service Revenues 23,352 29,938 - 49,726 47,651 4% (3) Cash Operating Expenses 9,017 14,894 5 22,814 24,905 (8%) Subsidies and Cost of Services 831 589 - 1,411 945 49% Prov
Slide 44: Consolidated Service Revenues
Consolidated Service Revenues 2023 2022 (1) % Change 1Q2023 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2022 Fixed Line 26,541 24,183 24,796 25,443 25,862 100,284 10% LEC 3,459 3,492 3,491 3,388 3,475 13,846 (1%) Fixed Line Voice - International 2,565 1,784 1,410 1,678 1,502 6,374 44% Fixed Line Voice
Slide 45: Consolidated Service Revenues and EBITDA
Consolidated Service Revenues and EBITDA (1) 2023 2022 % Change 1Q2023 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2022 Data and Broadband 38,602 36,374 38,145 38,392 38,993 151,904 6% Home Broadband 12,976 12,022 12,862 13,037 13,051 50,972 8% Fixed Line 12,565 11,379 12,284 12,525 12,584 48,772 10% F
Slide 46: Wireless Service Revenues
Wireless Service Revenues 2023 2022 % Change 1Q2023 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2022 Data/Broadband 18,604 18,129 18,782 18,610 18,676 74,197 3% Mobile Data 18,196 17,556 18,255 18,132 18,226 72,169 4% Mobile Internet 17,173 16,407 17,132 17,052 17,104 67,695 5% Mobile Broadband 801 889
Slide 47: Fixed Line Service Revenues
Fixed Line Service Revenues 2023 2022 % Change 1Q2023 vs 1Q 1Q 2Q 3Q 4Q FY (Php in millions) 1Q2022 Data/Broadband 22,981 22,783 24,249 26,585 16,461 90,078 1% Home Broadband 12,574 11,457 12,344 12,566 12,608 48,975 10% Corp. Data and Other Network Services 8,790 9,646 9,782 12,396 1,958 33,782 (9%
Slide 48: Expenses
Expenses 1Q2023 (1) Y-o-Y 1Q2022 (Php in millions) Wireless Fixed Line Others Consolidated % Change Operating Expenses Repairs and Maintenance 3,548 3,903 - 7,160 6,672 7% Compensation and Employee Benefits 1,810 5,654 - 7,456 11,102 (33%) Professional and Other Contracted Services 947 1,200 1 1,893
Slide 49: Other Income (expenses)
Other Income (expenses) 1Q2023 (1) Y-o-Y 1Q2022 Wireless Fixed Line Others Consolidated % Change ( Php in millions) Equity Share in Net Earnings (Losses) of Associates and Joint Ventures Multisys - - - - (30) (100%) Vega - - 20 20 3 567% Voyager - - (722) (722) (729) (1%) Others - - (3) (3) (2) 50%
Slide 50: Earnings Per Share (EPS)
Earnings Per Share (EPS) 1Q2023 1Q2022 (Php in millions except EPS (in Php) and Shares (in mn)) Basic Diluted Basic Diluted Net Income Attributable to Equity Holders of PLDT Continuing Operations 9,041 9,041 9,100 9,100 Discontinued Operations (26) (26) (21) (21) Net Income Attributable to Equity Ho
Slide 51: Balance Sheet
Balance Sheet Consolidated (Php in millions) 1Q2023 December 31, 2022 Total Assets 616,659 624,162 Nominal Value of Total Debt 247,675 251,859 in US$ $4,560 $4,941 Less: Unamortized Debt Discount 2,206 2,279 Total Debt 245,469 249,580 Cash and Short-Term Investments(1) 26,943 26,190 (2) Net Debt 220
Slide 52: Debt Profile
Debt Profile December 31, March 31, 2023 2022 Change Carrying Unamortized Debt Face Value Face Value Value Discount/Debt Issuance (Php in millions) Debt PLDT ₱150,259 ₱1,191 ₱151,450 ₱158,052 -₱6,602 Smart 92,232 993 93,225 93,807 -582 ePLDT 2,978 22 3,000 - 3,000 Total Debt ₱245,469 ₱2,206 ₱247,675
Slide 53: Forward-looking statements
Except for historical financial and operating data and other information in respect of historical matters, the statements contained herein are “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchang
Slide 54: PLDT
(PLDT